(BRUSSELS) - The European Union on Friday called for an immediate end to the hostilities in the breakaway Georgian province of South Ossetia, saying it was "extremely concerned" at events there.

"The European Union is extremely concerned at the reports of heavy fighting in the South Ossetian conflict zone and deplores the loss of life," a commission spokesman said.

"The European Commission calls for an immediate end to hostilities and for a swift resumption to negotiations in the framework of existing formats," the spokesman, John Clancy, told reporters in Brussels.

The 27-nation bloc "stands ready to increase its contribution to conflict resolution in Georgia with confidence-building measures," he added.

Georgian forces surrounded and shelled the capital of the Russian-backed breakaway South Ossetia province on Friday, drawing warnings of retaliation from Russia which supports the separatist administration.

Amid spiralling tensions, reports said Russian forces on peacekeeping duty in South Ossetia had been killed and Russian Prime Minister Vladimir Putin warned his country would respond to Georgia's offensive in the Caucasus trouble spot.

EU External Relations Commissioner Benita Ferrero-Waldner was "in close contact" on the matter with both the French presidency of the EU and Organisation for Security and Cooperation in Europe (OSCE) chief, the EU commission spokesman added.

Earlier a spokeswoman for EU foreign policy chief Javier Solana also called for an end to the hostilities.

"We are very concerned by the dramatic escalation of the situation," Cristina Gallach said.

"We are following it very closely and we are in contact with all the parties," she added.

"We renew the appeal given Thursday by the head EU diplomat Javier Solana and call on all parties to end the violence immediately."

Consultations were under way between the French EU presidency and the OSCE.

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